Notes to SEFA
BASIS OF PRESENTATION The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state award activity of North Texas Area Community Health Centers Inc. (a Texas nonprofit corporation) (the "Center") under programs of the federal and state government for the year ended December 31, 2025 and 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and State of Texas Single Audit Circular. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State of Texas Single Audit Circular, wherein certain types of expenditures are not allowable or limited as to reimbursement. Pass-through entity identifying numbers are presented where available and applicable.
SUBRECIPIENTS Of the federal and state expenditures presented in the schedules, North Texas Area Community Health Centers, Inc. provided no federal and state awards to subrecipients.
INDIRECT COST RATE The Center has elected to use the 10% de minimus rate during the year ended December 31, 2025 and 2024.